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Working With Us

Our Focus: Successful Small Companies with Growth Potential

Ideal Small Company Characteristics

Revenue between

$1 million and $5 million

Cash Flow between

$100,000 and $800,000

At least one of the following:

 

Existing management team
niche market
established product line
strong regional presence

Business Valuation Calculator

ICH applies a multiple of EBITDA to determine the Enterprise Value of your business. In general, smaller companies typically trade for between 3x to 5x normalized EBITDA. The difference in the multiple is generally the result of a variety of characteristics specific to your business. Read more about our valuation approach.

This is an estimate only and not a binding valuation of your company or commitment to buy.

Acquisition Process

Overview

What to Expect in a Sale or Partial Sale of Your Business There are many factors that influence the time required to complete a sale or partial sale of a small business and the process typically takes 90 to 120 days with an experience buyer.

  •    Step 1  - Introductions +

    Business owners often contact us directly to determine if we are interested in acquiring their company or partnering with them to invest in and help grow their businesses. In other cases, we reach out to small business that we have identified as a possible opportunity. Occasionally, we are introduced to business owners by an intermediary, such as a business broker, financial advisor or attorney. Typically, an initial off-site visit is setup to discuss our mutual interest.

  •    Step 2  - Preliminary Review +

    After the initial meeting and we have mutually determined that each other is a good fit, we mutually sign a Confidentiality Agreement, so you can share the following information with us:

    • Summary of the needs of the business owner (outright sale or partial sale, management buyout, etc.)
    • 3–5 years of financial results (P&L and balance sheet) or company tax returns
    • Review of annual Owners Benefits
    • Summary of top customers and suppliers
    • Other information that is may be relevant for a buyer

    After reviewing this information, we will either confirm our interest and discuss next steps or politely decline. At this point, we will issue a brief term sheet and arrange a site visit.

  •    Step 3  – Letter of Intent (LOI) +

    After review of the term sheet and a successful site visit, the process becomes more involved and more formal. Additional information is exchanged, and another site visit may take place. As we continue to learn about each other, further discussions regarding company valuation and transaction structure occur, eventually leading to a formal Letter of Intent.

    A Letter of Intent, or “LOI”, is a formal, written document indicating the terms a buyer is offering a seller in a proposed acquisition. The LOI is a formal commitment that we will be dedicating substantial resources to acquiring your business.

  •    Step 4  - From Letter of Intent to Closing +

    Due diligence is a detailed 30-day review of the business and includes a detailed analysis of accounting history and practices, operating practices, customer and supplier references, management references and market reviews. The due diligence process is completed by ICH principals.

    ICH has the committed capital on-hand to complete most acquisitions. However, in nearly all cases, we use some form of debt financing to supplement our equity capital. ICH has a working relationship with a local bank that partners with ICH to provide financing. This eliminates the process of obtaining SBA financing or the need to identify lenders interested in partnering to complete the acquisition.

    The final step in the acquisition process is the legal process or asset purchase agreement. Upon completion, at closing, the acquisition funds are wired to the seller and the acquisition is complete.